Rising yields amid West Asia crisis trigger massive FPI outflow.

Rising yields amid West Asia crisis trigger massive FPI outflow. Foreign portfolio investors have withdrawn ₹17,689 crore from India's government securities as geopolitical tensions push crude oil prices higher and inflation concerns mount. FPI holdings in Fully Accessible Route government securities fell to ₹3,13,318.661 crore on April 1 from ₹3,31,007.648 crore on February 27. The benchmark 10-year government bond yield surged above 7 percent, the highest in over 20 months, making existing bonds less attractive to overseas investors. Rising yields reduce bond valuations and trigger unwinding of positions, particularly in interest rate-sensitive segments. Market experts expect yields to remain elevated in the 6.90-7.20 percent range as inflationary pressures persist from surging global crude oil prices linked to West Asia developments.